Huagong Technology (000988) Annual Report Review: Revenue Steady Growth Steady Growth Strengthen R & D, High-end Products Continuously Breakthrough

Huagong Technology (000988) Annual Report Review: Revenue Steady Growth Steady Growth Strengthen R & D, High-end Products Continuously Breakthrough

Event: On March 29, Huagong Technology released its annual 深圳桑拿网 report. The company’s revenue in 2018 was 52.

3 ppm, an increase of 16 in ten years.

8%; net profit attributable to mother 2.

84 ‰, a decrease of 12 per year.


The overall business growth, expansion and expansion affect short-term profits.

In 2018, all business segments of Huagong Technology grew comprehensively, and the revenue from laser processing business17.

80,000 yuan (ten years +14.

57%, gross margin 38%, +5.

1PCT); Optoelectronic device business income 21.

70,000 yuan (+22 for the whole year.

09%, gross profit margin 8.

62%, -2.

7PCT); laser holographic anti-counterfeiting income 3.

2.9 billion (nineteen + 19.

33%, gross margin 54.

20%, +0.

3PCT); income from sensitive components 8.

59 MB (+ 7 per second.

22%, gross margin 25.

28%, -5.


Company selling expenses 4.

9.7 billion (previously + 47%), R & D investment2.

98 ppm (previously + 42%), we think the severity of sales and R & D expansion has shortened, affecting the company’s profit, but solidifying the long-term development foundation.

High-end laser products continue to break through and gradually enter the harvest period.

Revenue from subsidiary Huagong Laser Engineering 11.

5.4 billion yuan (basically unchanged); Huari Precision Laser revenue 1.

51 ppm (ten years + 40%).

In 18 years, the company conquered a variety of key technologies in the fields of laser three-dimensional processing and high-power laser welding heads, and launched a new Marvel Wanwa cutting platform.

In the new energy vehicle market, sales of body-in-white laser welding equipment and production lines increased by 63%; sales of domestic 3C consumer electronics business increased by 50%; and the laser cutting product operation center increased contract value by more than 90%.

Seize the 5G lead and accelerate the development of optical communications.

Subsidiary Huagong Zhengyuan’s revenue 17.

900 million (percent + 22%) and a net profit of 0.

880,000 yuan (one year + 76%).

In 2018, the company’s first order for 5G optical modules was successfully delivered, becoming the first domestic company to receive orders for Huawei’s 5G optical modules, and was awarded Huawei’s global gold supplier in 2018.

Yunling Optoelectronics initiated the establishment of mass production of 10G optical chips, and optimized design of 25G chips.

Laser anti-counterfeiting technology is leading, and sensor customers have made breakthroughs.Subsidiary Huagong Image Revenue 3.

400 million (+ 23%) and a net profit of 1.

100 million (+ 56%); Laser anti-counterfeiting technology is the first domestic holographic positioning water transfer flower paper to seize the opportunity in the domestic famous wine market.

Huagong Gaoli income 8.

600 million (percent + 13%), the automotive electronics business in the automotive market in 18 years to obtain another seven OEMs, four auto parts supplier supplier qualification, of which new energy vehicle customers accounted for more than 80%, business growth reached 217%.
Earnings forecasts and investment advice.

We estimate that the company’s revenue for 2019-2021 will be 64.

08 billion, 79.

7.7 billion, 100.

US $ 3.2 billion, net profit attributable to shareholders of the parent company was 4.

1.5 billion, 5.

4.8 billion yuan, 7.

0.4 billion, EPS is 0.

41 yuan, 0.

55 yuan, 0.

70 yuan.

With reference to the company’s historical estimates and the average level of comparable companies, the company’s 2019 dynamic PE range is 35-44X, corresponding to a reasonable value range of 14.


04 yuan, “continuous market” rating.

The main risk factors.

The boom in the laser equipment industry exceeded expectations, and the price competition for optical devices exceeded expectations.